Crypto market overview: Tether issues drag Bitcoin and major altcoins down

  • Bitcoin and major altcoins continue to drag out their miserable experience in tight ranges.
  • Tether is losing popularity despite that the volatility is over.

Cryptocurrency market is still trapped in a range, however, all major coins seem to be creeping down with the total value of digital asset market reduced to $209B. 

BTC/USD is changing hands at $6,406, losing about 0.44% since this time on Monday. Listless trading evaporates speculative interest towards the digital coin No.1, though both volatility and trading activity might return once $6,400 handle is broken.

Ripple’s XRP is down 1.5% in recent 24 hours, changing hands at $0.4578 with a bearish bias. More downside may be in store for XRP/USD, once $0.4500 is cleared.

Ethereum in unmovable at 204 handle. The second largest coin by market value shows no signs of squeezed in the range between $200 and $207.

Litecoin is trading at $52.21, mostly unchanged both on a day-to-day basis and since the beginning of Tuesday. 

Ripple effect of Tether issues

Unexpected Tether volatility caught traders by surprise at the beginning of the previous week. While the dust settled and all major coins returned to the safety of their ranges, the incident can have more profound consequences than a couple of wild swings on the market. Traders are spooked by such behavior of a stable coin that is meant to be just that – stable. That’s why many of them have opted out for other digital assets or other stable coins, 

“For traders, the instability of Tether provides an interesting conundrum of whether to opt into other more regulated stable coin options such as Gemini dollars, Circle dollars or TrueUSD, which offer the same 1:1 to USD option to Tether, but with more apparent robustness and security,” says Aditya Das, economist at Brave New Coin.

“Liquidity and availability have likely been Tether’s greatest driver of value and popularity, but with a new number of stable coin options tradable on major exchanges like Huobi and Okex, the stablecoin flippening may continue to unfold.”

What will come out of it? We shall wait and see.

Crypto Destroyer